AA says Britons on low incomes are being forced to sell their cars as petrol prices soar
AA says Britons on low incomes are being forced to SELL their cars: Group calls for a further 10p-a-litre cut in fuel duty as petrol prices soar amid cost-of-living crisis
AA President Edmund King has said motorists are being forced to sell their carsIn a survey of 15,000 drivers, 2 per cent on low incomes had given up vehiclesOthers are having to cut back on food bills as they need their car to get to workIt comes as the cost of average tank of petrol passed £100 for the first time ever
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Britons on low incomes are being forced to sell their cars due to soaring petrol prices, the president of motoring group AA has warned.
The company surveyed 15,000 drivers and found many had made the decision to part ways with their vehicles due to the cost of living crisis.
It comes as the average cost of filling a typical family car with petrol has exceeded £100 for the first time.
The AA called for a further 10p-per-litre cut in fuel duty and the introduction of a ‘fuel price stabiliser’ which would see the rate lowered when prices rise, and increased when prices drop.
AA President Edmund King told BBC Radio 4’s World At One programme: ‘We did a survey of 15,000 drivers and 2 per cent of those on low incomes are actually having to give up their cars.
‘And 27 per cent on low incomes are actually having to cut back on their food bills, because they live in rural areas, they need their car to get to work and there is no public transport.
‘So, it’s having a much broader effect across the whole economy, and the whole economy and businesses are suffering as a result.’
Mr King urged the Government to introduce a ‘fuel price checker’ to let people know the cheapest price on offer in their local area in a bid to ease the pressure facing Britain’s motorists.
Britons on low incomes are being forced to sell their cars due to soaring petrol prices and the cost of living crisis, Edmund King (pictured) the president of motoring group AA has warned
This motorist put 56 litres of diesel in their car which has now cost them £105.22. In 2020, that same tank would cost them £66.90 – and increase of £38.32 – an increase of 57 per cent
He added: ‘There is a massive price variation (in fuel) across the country.
‘So, what we’ve called for from the Government today is to introduce a fuel price checker.
‘They have this in Northern Ireland, it’s run by the Consumer Council, and actually publishes the average price, the cheapest price and the highest price in every town, city, in every area.
‘As a result, prices in Northern Ireland are actually 6p a litre both in petrol and diesel cheaper than the rest of the UK, because it brings in competition.
‘So, that and a fuel price stabiliser, I think, would help individuals and the economy.’
It comes as the average cost of filling a typical family car with petrol exceeded £100 for the first time.
Figures from data firm Experian show the average price of a litre of petrol at UK forecourts reached a record 182.3p on Wednesday.
That was an increase of 1.6p compared with Tuesday, taking the average cost of filling a 55-litre family car to £100.27.
The average price of a litre of diesel on Wednesday was 188.1p.
MailOnline research shows it now costs £63.81 to fill up a Fiat 500 with petrol and £65.82 with diesel.
A VW Golf with a 55-litre tank costs £100.27 for a full tank of petrol and £103.43 for diesel.
A Mercedes E Class driver will need to find £145.85 to fill their ride with petrol and £150.44 with diesel.
Filling a Range Rover will now cost £189.60 for petrol and £195.57 for diesel, a Porsche Panamera 4S will cost £164.08 for petrol and £169.25 for diesel and a Ford Transit van costs £169.25 to be filled with diesel.
Prime Minister Boris Johnson said he wants the 5p-per-litre cut in fuel duty implemented in March to have ‘an impact on the pumps’, adding that the Government is watching retailers ‘very closely’.
According to the RAC, the average price of petrol this week hit £1.82 while diesel is £1.88
RAC fuel spokesman Simon Williams said the average price of petrol crossing the ‘thoroughly depressing threshold of £100 a tank’ meant it was ‘a truly dark day’ for drivers.
He went on: ‘There’s almost certainly going to be upward inflationary pressure, which is bad news for everybody.
‘While fuel prices have been setting new records on a daily basis, households up and down the country may never have expected to see the cost of filling an average-sized family car reach three figures.’
Mr Williams said many people will be hoping for further financial support from the Government as the 5p-per-litre cut in fuel duty ‘looks paltry’ because wholesale petrol costs have increased by five times that amount since it was introduced.
‘A further duty cut or a temporary reduction in VAT would go a long way towards helping drivers, especially those on lower incomes who have no choice other than to drive,’ he added.
The AA called for a further 10p-per-litre cut in fuel duty and the introduction of a ‘fuel price stabiliser’ which would see the rate lowered when prices rise, and increased when prices drop.
The firm’s president, Edmund King, said: ‘Enough is enough. The Government must act urgently to reduce the record fuel prices which are crippling the lives of those on lower incomes, rural areas and businesses.
‘A fuel price stabiliser is a fair means for the Treasury to help regulate the pump price, but alongside this they need to bring in more fuel price transparency to stop the daily rip-offs at the pumps.
‘The £100 tank is not sustainable with the general cost-of-living crisis, so the underlying issues need to be addressed urgently.’
Answering questions from journalists in Blackpool, Mr Johnson said: ‘We made a cut already… the biggest cut ever in fuel duty.
‘What I want to see is those cuts in taxation not just swallowed up in one gulp, without touching the gullet of the fuel companies, I want to see those cuts having an impact on the pumps.
‘And we are watching very closely to see what happens.’
Mr Johnson said many companies ‘don’t want to just take profit, they do have a sense of responsibility, but we need to see it’.
Downing Street indicated on Wednesday that fuel retailers failing to pass on the 5p duty cut could be named and shamed.
Many forecourts are already selling petrol and diesel above £2 per litre.
Price comparison website PetrolPrices said around 50 sites on UK motorways or major A roads are charging 202.9p per litre.
Pump prices began to soar after Russia’s invasion of Ukraine in February led to oil supply fears.
